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Sept. 22, 2020, 3:37 p.m. EDT

Here’s one way to rotate to value with 4 ‘out-of-favor’ stocks and ETFs that hold them

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Andrea Riquier

It has been a tough slog for value tradersover the past few years, with growth strategies ascendant, but many analysts continue to believe value will make a comeback.

“The gap between growth and value strategies is wider than during the tech bubble of the late 1990s,” observed Todd Rosenbluth, head of mutual fund and ETF research at CFRA.

“Investors should be prepared for the likelihood that the gap narrows (a reversion to the mean) and seek out attractive securities within the value style,” the analyst said.

(Here’s a little primer on factors like value and growth, and a more recent update on how to apply that thinking to the current environment .)

Rosenbluth recommends a handful of stocks that he calls “attractive, yet out-of-favor”: Cardinal Health /zigman2/quotes/206646342/composite CAH -1.82% , Cisco Systems Inc., /zigman2/quotes/209509471/composite CSCO -2.14% PepsiCo Inc. /zigman2/quotes/208744353/composite PEP -1.45% , and Walmart Inc. /zigman2/quotes/207374728/composite WMT -1.22% If investors want exposure to those securities within a fund, several ETFs that have large holdings of each stock are noted below.

Read next: Forget value vs. growth. We’re in a quarantine vs. recovery paradigm now, this analyst says

/zigman2/quotes/206646342/composite
US : U.S.: NYSE
$ 47.90
-0.89 -1.82%
Volume: 1.79M
Oct. 19, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
4.06%
Market Cap
$14.31 billion
Rev. per Employee
$2.83M
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/zigman2/quotes/209509471/composite
US : U.S.: Nasdaq
$ 39.30
-0.86 -2.14%
Volume: 19.57M
Oct. 19, 2020 4:00p
P/E Ratio
14.94
Dividend Yield
3.66%
Market Cap
$170.01 billion
Rev. per Employee
$684,933
loading...
/zigman2/quotes/208744353/composite
US : U.S.: Nasdaq
$ 139.68
-2.05 -1.45%
Volume: 3.22M
Oct. 19, 2020 4:00p
P/E Ratio
27.67
Dividend Yield
2.93%
Market Cap
$195.86 billion
Rev. per Employee
$242,172
loading...
/zigman2/quotes/207374728/composite
US : U.S.: NYSE
$ 142.95
-1.76 -1.22%
Volume: 4.88M
Oct. 19, 2020 4:00p
P/E Ratio
22.78
Dividend Yield
1.51%
Market Cap
$410.07 billion
Rev. per Employee
$223,654
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